Correlation Between Cellebrite and Sterling Check
Can any of the company-specific risk be diversified away by investing in both Cellebrite and Sterling Check at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Cellebrite and Sterling Check into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cellebrite DI and Sterling Check Corp, you can compare the effects of market volatilities on Cellebrite and Sterling Check and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Cellebrite with a short position of Sterling Check. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellebrite and Sterling Check.
Diversification Opportunities for Cellebrite and Sterling Check
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cellebrite and Sterling is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Cellebrite DI and Sterling Check Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Check Corp and Cellebrite is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Cellebrite DI are associated (or correlated) with Sterling Check. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling Check Corp has no effect on the direction of Cellebrite i.e., Cellebrite and Sterling Check go up and down completely randomly.
Pair Corralation between Cellebrite and Sterling Check
Given the investment horizon of 90 days Cellebrite DI is expected to generate 0.99 times more return on investment than Sterling Check. However, Cellebrite DI is 1.01 times less risky than Sterling Check. It trades about 0.14 of its potential returns per unit of risk. Sterling Check Corp is currently generating about 0.02 per unit of risk. If you would invest 429.00 in Cellebrite DI on August 30, 2024 and sell it today you would earn a total of 1,560 from holding Cellebrite DI or generate 363.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.16% |
| Values | Daily Returns |
Cellebrite DI vs. Sterling Check Corp
Performance |
| Timeline |
| Cellebrite DI |
| Sterling Check Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Cellebrite and Sterling Check Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cellebrite and Sterling Check
The main advantage of trading using opposite Cellebrite and Sterling Check positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellebrite position performs unexpectedly, Sterling Check can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sterling Check will offset losses from the drop in Sterling Check's long position.| Cellebrite vs. Crowdstrike Holdings | Cellebrite vs. Okta Inc | Cellebrite vs. Cloudflare | Cellebrite vs. MongoDB |
| Sterling Check vs. EverCommerce | Sterling Check vs. Evertec | Sterling Check vs. Consensus Cloud Solutions | Sterling Check vs. CSG Systems International |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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